Two Ways: Bad Day For Baidu
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Baidu (BIDU) shares are getting pounded on this morning. The Chinese search engine beat Wall Street estimates by reporting profits for the third quarter of $2.16 a share, $0.35 better than consensus expectations.
But the company gave downside guidance on revenues for the fourth quarter, saying it expected $174 to $180 million versus consensus of $202.90 million.
Shares are down nearly $75, or -17%, to 360.00 in the premarket. Toddo mentioned Baidu yesterday in Monday Morning Quarterback: The Bull-Bear Debate!
From the Bull Pen: If you're looking for a short-term day trade, keep an eye on Research In Motion (RIMM). The stock has flipped green a few times this morning while the rest of the high beta tech plays are red -- a sign of demand. Watch for the stock to make a first-hour low. A sell stop can be set 2% below entry.
From the Bear Cave: The sentiment from Baidu could weigh on the tech sector. Bears can also look to Broadcom (BRCM), a play Professor Smita Sadana mentioned on the Buzz yesterday. Those playing the downside can set a buy stop above the 50-day moving average (currently $29.25).
A Quick Check Around the World
Asian trading closed with the Nikkei -1.45%, India -2.31%, Hang Seng -1.86%, Shanghai -2.83%, and Taiwan -0.14%.
Across the pond, we see the FTSE 0.37%, CAC 0.30%, DAX 0.26%
As of 8:10 a.m. EST, S&P Futures are trading -0.25 to 1066.00 and Nasdaq futures are -0.500 to 1747.50.
A Look at Commodities
Over in commodities, crude oil is +0.18 to 78.84 while gold is -2.60 to 1040.20 this morning. Silver is -+0.25to 17.120 and copper -0.005 to 3.0105.
The dollar index is -0.0500 to 75.9500.
On the Radar
9:00 CaseShiller Home Price Index -11.45% cons.
9:00 Consumer Confidence 54.0 cons.
Click here for the full trading radar.
Welcome back and have a great day!
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